Summaries of health policy coverage from major news organizations

SHARP HEALTHCARE: SELLS SOUTHERN CALIFORNIA HOSPITAL

San Diego-based Sharp HealthCare announced Tuesday that it is selling its Murrieta hospital in southern California to Tenet HealthSystems for $29 million, San Diego Union-Tribune reports. "Ironically," Sharp officials said the sale "was driven by growing demand for hospital beds in the Murrieta area, in contrast to shrinking demand in San Diego." San Diego Union-Tribune notes that "meeting the demands of Murrieta growth requires additional investment and borrowing capital that would apparently exacerbate problems for Sharp." Sharp CEO Michael Murphy said, "It was apparent to the board that the best interests of both the hospital and the system would be served by a transaction that would assure Murrieta the resources necessary for growth without additional indebtedness to the Sharp system." The $29 million sale price "falls below the $42 million in liabilities listed" for Murrieta. NO MISTAKES THIS TIME San Diego Union-Tribune notes that the Murrieta sale comes on the heels of Sharp's failed joint venture with Columbia/HCA Healthcare Corp. (see AHL 2/24), which collapsed in the face of regulatory opposition from California Attorney General Dan Lungren (R). The attorney general must approve the Murrieta deal, but Sharp officials said they have "remained in communication" with Lungren's office and intend to "work very closely" with the attorney general on the sale (Rose, 9/24).

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